Wall Street, oil prices drag STI down

THE local bourse caught the negative vibe that swept across Asia owing to the risk-off tone overnight in Wall Street as oil prices tumbled and the outlook of US tax reforms remained uncertain. The key Straits Times Index notched up its fourth straight day of losses.

The STI retreated 30.39 points or 0.9 per cent to finish at 3,368.7 on Wednesday. Other key Asian bourses followed suit with Japan's Nikkei 225 down 1.57 per cent, Hong Kong's Hang Seng falling one per cent and China's Shanghai Composite losing 0.8 per cent.

Analysts also opined that the correction was waiting to happen given the extended rally in global financial markets in recent months. Global stocks markets continued their bull run in October which was largely led by rising confidence as a result of the strength and breadth of the recovery in emerging and developed economies.